41. For the purposes of section 130(1) of the Act as it applies to housing benefit (no entitlement to benefit if capital exceeds a prescribed amount), the prescribed amount is £16,000.
42.—(1) For the purposes of Part VII of the Act as it applies to housing benefit, the capital of a claimant to be taken into account shall, subject to paragraph (2), be the whole of his capital calculated in accordance with this Part.
(2) There shall be disregarded from the calculation of the claimant’s capital under paragraph (1) any capital, where applicable, specified in Schedule 7.
(3) A claimant’s capital shall be treated as including any payment made to him by way of arrears of—
(a)child tax credit;
(b)working tax credit;
(c)state pension credit,
if the payment was made in respect of a period for the whole or part of which housing benefit was paid before those arrears were paid.
43. Capital which a claimant possesses in the United Kingdom shall be calculated—
(a)except in a case to which paragraph (b) applies, at its current market or surrender value less—
(i)where there would be expenses attributable to sale, 10 per cent., and
(ii)the amount of any encumbrance secured on it;
(b)in the case of an Ulster or National Savings Certificate—
(i)if purchased from an issue the sale of which ceased before 1st July last preceding the date on which the claim is made or treated as made, or the date of any subsequent revision or supersession, at the price which it would have realised on that 1st July, had it been purchased on the last day of that issue;
(ii)in any other case, at its purchase price.
44. Capital which a claimant possesses in a country outside the United Kingdom shall be calculated—
(a)in a case where there is no prohibition in that country against the transfer to the United Kingdom of an amount equal to its current market or surrender value in that country, at that value;
(b)in a case where there is such a prohibition, at the price which it would realise if sold in the United Kingdom to a willing buyer,
less, where there would be expenses attributable to sale, 10 per cent. and the amount of any encumbrance secured on it.
45.—(1) A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to housing benefit or increasing the amount of that benefit except to the extent that the capital which he is treated as possessing is reduced in accordance with regulation 46.
(2) A person who disposes of capital for the purpose of—
(a)reducing or paying a debt owed by the claimant; or
(b)purchasing goods or services if the expenditure was reasonable in the circumstances of the claimant’s case,
shall be regarded as not depriving himself of it.
(3) Where a claimant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he shall be treated as if he were such sole owner or partner and in such a case—
(a)the value of his holding in that company shall, notwithstanding regulation 42, be disregarded; and
(b)he shall, subject to paragraph (4), be treated as possessing an amount of capital equal to the value or, as the case may be, his share of the value of the capital of that company and the foregoing provisions of this Part shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.
(4) For so long as a claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (3) shall be disregarded.
(5) Where under this regulation a person is treated as possessing capital, the amount of that capital shall be calculated in accordance with the provisions of this Part as if it were actual capital which he does possess.
46.—(1) Where a claimant is treated as possessing capital under regulation 45(1), the amount which he is treated as possessing—
(a)in the case of a week that is subsequent to—
(i)the relevant week in respect of which the conditions set out in paragraph (2) are satisfied, or
(ii)a week which follows that relevant week and which satisfies those conditions,
shall be reduced by an amount determined under paragraph (3);
(b)in the case of a week in respect of which paragraph (1)(a) does not apply but where—
(i)that week is a week subsequent to the relevant week, and
(ii)that relevant week is a week in which the condition in paragraph (4) is satisfied,
shall be reduced by the amount determined under paragraph (4).
(2) This paragraph applies to a benefit week where the claimant satisfies the conditions that—
(a)he is in receipt of housing benefit; and
(b)but for regulation 45(1), he would have received an additional amount of housing benefit in that week.
(3) In a case to which paragraph (2) applies, the amount of the reduction for the purposes of paragraph (1)(a) shall be equal to the aggregate of—
(a)the additional amount to which paragraph (2)(b) refers;
(b)where the claimant has also claimed state pension credit, the amount of any state pension credit or any additional amount of state pension credit to which he would have been entitled in respect of the benefit week to which paragraph (2) refers but for the application of regulation 21(1) of the State Pension Credit Regulations (Northern Ireland) 2003(1) (notional capital);
(c)where the claimant has also claimed a jobseeker’s allowance, the amount of an income-based jobseeker’s allowance to which he would have been entitled in respect of the benefit week to which paragraph (2) refers but for the application of regulation 113 of the Jobseeker’s Allowance Regulations(2) (notional capital).
(4) Subject to paragraph (5), for the purposes of paragraph (1)(b) the condition is that the claimant would have been entitled to housing benefit in the relevant week but for regulation 45(1), and in such a case the amount of the reduction shall be equal to the aggregate of—
(a)the amount of housing benefit to which the claimant would have been entitled in the relevant week but for regulation 45(1) and, for the purposes of this sub-paragraph, if the relevant week is a week to which regulation 59(4)(a) refers, that amount shall be determined by dividing the amount of housing benefit to which he would have been so entitled by the number of days in that week for which he was liable to make payments in respect of the dwelling he occupies as his home and multiplying the quotient so obtained by 7;
(b)if the claimant would, but for regulation 21 of the State Pension Credit Regulations (Northern Ireland) 2003, have been entitled to state pension credit in respect of the benefit week, within the meaning of regulation 1(2) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount shall be determined by dividing the amount of the state pension credit to which he would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient so obtained by 7;
(c)if the claimant would, but for regulation 113 of the Jobseeker’s Allowance Regulations, have been entitled to an income-based jobseeker’s allowance in respect of the benefit week, within the meaning of regulation 1(2) of those Regulations(3) (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount shall be determined by dividing the amount of the income-based jobseeker’s allowance to which he would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient so obtained by 7.
(5) The amount determined under paragraph (4) shall be re-determined under that paragraph if the claimant makes a further claim for housing benefit and the conditions in paragraph (6) are satisfied, and in such a case—
(a)sub-paragraphs (a) to (c) of paragraph (4) shall apply as if for “relevant week” there were substituted “relevant subsequent week”; and
(b)subject to paragraph (7), the amount as re-determined shall have effect from the first week following the relevant subsequent week in question.
(6) The conditions are that—
(a)a further claim is made 26 or more weeks after—
(i)the date on which the claimant made a claim for housing benefit in respect of which he was first treated as possessing the capital in question under regulation 45(1);
(ii)in a case where there has been at least one re-determination in accordance with paragraph (5), the date on which he last made a claim for housing benefit which resulted in the weekly amount being re-determined, or
(iii)the date on which he last ceased to be entitled to housing benefit,
whichever last occurred; and
(b)the claimant would have been entitled to housing benefit but for regulation 45(1) or regulation 46(1) of the Housing Benefit Regulations.
(7) The amount as re-determined pursuant to paragraph (5) shall not have effect if it is less than the amount which applied in that case immediately before the re-determination and in such a case the higher amount shall continue to have effect.
(8) For the purposes of this regulation—
“part-week” in paragraph (4)(b) and (c) means—
a period of less than a week which is the whole period for which state pension credit, or, as the case may be, an income-based jobseeker’s allowance, is payable; and
any other period of less than a week for which either of those benefits is payable;
“relevant week” means the benefit week in which the capital in question of which the claimant has deprived himself within the meaning of regulation 45(1)—
was first taken into account for the purpose of determining his entitlement to housing benefit; or
was taken into account on a subsequent occasion for the purpose of determining or re-determining his entitlement to housing benefit on that subsequent occasion and that determination or re-determination resulted in his beginning to receive, or ceasing to receive, housing benefit,
and where more than one benefit week is identified by reference to paragraphs (a) and (b) of this definition, means the later or latest such benefit week;
“relevant subsequent week” means the benefit week which includes the day on which the further claim or, if more than one further claim has been made, the last such claim was made.
47.—(1) Where a claimant and one or more other persons are beneficially entitled in possession to any capital asset, other than a capital asset disregarded under regulation 45(3), they shall be treated as if each of them were entitled in possession to the whole beneficial interest therein in an equal share and the foregoing provisions of this Part shall apply for the purposes of calculating the amount of capital which the claimant is treated as possessing as if it were actual capital which the claimant does possess.
(2) Any premises or land not wholly owned by the claimant shall be disregarded for such period as is reasonable in the circumstances to enable the collection of such information as is necessary to determine the treatment of capital in accordance with paragraph (1).
Regulation 113 was amended by S.R. 1997 No. 412, S.R. 1998 No. 326, S.R. 1999 No. 391, S.R. 2000 No. 350, S.R. 2001 No. 151, S.R. 2002 Nos. 128 and 132, S.R. 2003 No. 195, S.R. 2004 No. 389 and S.R. 2005 Nos. 98 and 424
The definition of “benefit week” was amended by regulation 2(2) of S.R. 1996 No. 358 and regulation 2(2)(a) of S.R. 1996 No. 503